Asia markets fall on AI stock pullback, China data miss

December 15, 2025 (MLN): Asia markets opened the week under pressure on Monday, mirroring losses on Wall Street as investors stepped back from the artificial intelligence trade and turned cautious ahead of key economic signals from China.

The subdued mood followed a decline in U.S. equities on Friday, when investors rotated out of high-growth technology stocks.

Argent Capital Management portfolio manager Jed Ellerbroek said the session showed a shift toward value stocks, noting that investors remain wary of AI-related names rather than outright bearish, according to CNBC.

Focus across the region was also on China’s latest economic indicators for November.

Retail sales rose only 1.3% from a year earlier, sharply missing market expectations of 2.8% growth and slowing from October’s 2.9% increase.

Industrial production increased 4.8% year-on-year, slightly below the previous month and short of forecasts for a 5% rise, reinforcing concerns about uneven economic momentum.

South Korean equities led regional declines, with the Kospi dropping 2.16% and the Kosdaq losing 1.17%.

Heavyweight chipmakers came under notable pressure, as SK Hynix slid more than 4% and Samsung Electronics fell 3.3%, showing weakness across the semiconductor and AI supply chain.

Japanese stocks also retreated despite improved business confidence data. The Nikkei 225 fell 1.3%, while the broader Topix eased 0.27%.

Earlier, Japan reported its fourth-quarter Tankan survey, which showed business sentiment among large manufacturers rising to +15, the strongest reading in four years and in line with expectations.

The non-manufacturing index stood at +34, highlighting continued strength in the services sector.

In Australia, the S&P/ASX 200 declined 0.66%. Investor sentiment was further weighed down by news of the country’s deadliest gun attack in more than 30 years, which resulted in at least 15 fatalities.

Greater China markets were mixed, with Hong Kong’s Hang Seng Index down 0.79% while the mainland CSI 300 finished flat after the release of the latest economic data.

The cautious tone followed a sharp pullback in U.S. markets at the end of last week.

On Friday, the S&P 500 fell 1.07% from record levels, the Nasdaq Composite dropped 1.69%, and the Dow Jones Industrial Average slipped 0.51% after hitting a new intraday high earlier in the session.

AI-linked stocks led the sell-off in the United States, with Broadcom plunging more than 11%.

Other technology names, including AMD, Palantir Technologies and Micron, also closed lower, signaling a broader pause in the AI-driven rally as global markets reassess risk.

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